BMW cuts 2026 profit forecast China slump triggers 7% drop

BMW AG issued a sweeping profit warning on Tuesday, June 16, 2026, citing a severe downturn in China and the economic fallout from the Middle East conflict. The announcement sent the German luxury carmaker's shares tumbling more than 7 percent in European trading on Wednesday.

The company now forecasts a significant decline in group profit before tax for 2026, having previously guided for only a moderate decrease. BMW also sharply lowered its automotive earnings margin forecast to a range of 1 to 3 percent, down from a previous target of 4 to 6 percent. The return on capital employed in its automotive division was reduced to 15 percent from a prior range of 6 to 10 percent.

In a statement, BMW said market conditions in China deteriorated further during the second quarter, leading to more intense competition that has spilled over into the wider Asia-Pacific region. While sales in Europe and the United States have improved, the company stated this growth is insufficient to offset the slowdown in its largest market. BMW now expects vehicle deliveries to decline slightly this year, having previously anticipated stable sales.

The automaker also noted the impact of the conflict in the...